Guyana: GPSU set to receive about 10% wage increase

Guyana’s Public servants are expected to get a pay rise in the next few weeks in line with the two-year deal signed between the Guyana government and the Guyana Public Service Union (GPSU).

The deal is expected to be signed before the end of the year, after two weeks of discussions that incorporated the standpoint of the Bureau of Statistics on the matter of living expenses.

Figures revealed as far

Actual figures are yet to be disclosed but insiders reveal that the GPSU demanded for a 25% increase but is willing to accept only a 10% rise.

Inflation, for instance, still remains a thorn in the flesh of most countries as well as the worker productivity which has for a long time suffered significant setback. If this agreement is signed it will go a long way in helping this situation.

Reasons leading to the decision

The GPSU had intended to proceed with a strike and seek legal remedies since it accused government of not adhering to clause 3 of the 1978 Agreement for the Avoidance and Settlement of Disputes and the Guyana Constitution.

GPSU also stated that the government failed to stick to provisions of the International Labour Organisation conventions.

This case from the government shows the awareness of the parties to engage in collective bargaining as part of the endeavour to keep industrial harmony and within the laws.

The Guyana Teachers’ Union recently negotiated a three-year collective agreement to enhance pay, which includes 10% pay increase for the 2024 fiscal year, 8% for the 2025 fiscal year and 9% for the 2026 fiscal year, with other allowances and improvements.

Keeping future in mind

Although the GPSU’s bargaining took two years, which is shorter in the time set apart from bargaining to negotiation, it might pave way to other sectors’ wage reviews.

The proposed increase in pay for the public servants will help to relieve consumers and bear the increased living costs as well as curve inflation. But the macro-economic implications, such as budgeting changes, harnessing inflationary pressure are some of the major factors.

This agreement show that compulsory arbitration is a viable solution for negotiating a fair share between the government and the unions representing civil servants.

Signing this deal would mean a new push for the improvements of the well-being of people in Guyana particularly the public service sector.